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StumbleSUN EDITORIAL:
The cost of government
In many cases, compensation for public employees must be reined in
Friday, March 5, 2010 | 2:05 a.m.
For several years in Nevada there has been an outcry about government workers’ compensation, and it has grown louder because of the state’s current economic condition. As budget cuts are eroding Nevada’s already meager services, it has become clear that many of the pay-and-benefit packages are unsustainable.
For example, in recent years Clark County has seen its payroll balloon, inflated by bonuses for longtime workers and out-of-control overtime. The average county employee’s pay-and-benefits package is more than $90,000, and the average firefighter earned more than $100,000 last year. More than 400 county employees, most of them firefighters, earned more than $20,000 last year in overtime pay.
Government employees also earn lucrative retirement benefits, as well as other perks, including generous time off and sick leave.
In years past, government officials argued that they needed to offer strong benefits to attract good candidates because the pay wasn’t competitive with the private sector. But those days are long gone.
Several studies have shown public employees in Nevada on average make more than their counterparts in other states. Government pay outpaces wages for comparable private-sector jobs in Nevada. However, before anyone gets the sense that government is bloated, it should be noted that Nevada has the lowest number of government employees per capita in the nation.
State government has cut pay and reduced its workforce over the past few years to try to tighten its budget, but local governments have found that difficult to do. Unlike state employees, local government workers can form unions and engage in collective bargaining with employers. And local government officials have not done a good job reining in payroll expenses. Past negotiations have resulted in contracts that offer lucrative benefits to employees, and the governments are locked into those contracts. For anything to change in the near term, it will either mean layoffs or union concessions.
Las Vegas recently announced it would have to lay off nearly 200 people unless its employee unions agreed to an across-the-board reduction in pay and benefits. City officials are now negotiating with the unions.
Many people who criticize employee pay use the issue to decry government and unions, and that is a shame because it pollutes the debate. Government plays a vital role in our society, and Americans should want top-notch people working in government. To attract good candidates, governments need to be competitive with their pay and benefits. The problem is many of these contracts don’t recognize the economic reality of the times.
How many private employers have anything close to these pay-and-benefits packages? Many union contracts require an annual wage increase, which has become a rarity in the past few years outside of government. And although many private employers have cut their match for retirement pay because of the recession, state law requires governments to pay at least half of their employees’ contribution to the state pension fund.
The bottom line is that if the state and local governments are to get a handle on their budget problems, they will have to address the level of pay-and-benefits packages for public employees and reduce costs. Otherwise the level of needed services will decline more as government budgets will unacceptably be eroded by payroll.
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The sad truth is that the employee was hired to do a job. Who is responsible for making the decisions to run our government at the state, county or city level? Why are the decision makers making mistakes with budgitary decisions and then the employee has to suffer by losing hours to be worked, or losing his job completely. Why do the decision makers making the mistakes, not paying for the mistakes? Why does the middle class employee have to suffer?
The LV Sun laments " it has become clear that many of the pay-and-benefit packages are unsustainable.....The average county employee's pay-and-benefits package is more than $90,000.... Government pay greatly outpaces wages for comparable private-sector jobs in Nevada....The bottom line is that if the state and local governments are to get a handle on their budget problems, they will have to address the level of pay-and-benefits packages for public employees and reduce costs."
---------------------------------
This is a huge turning point for the LV Sun -- it reflects a new campaign to provide cover for what Roy Reid will have to do.
Dear Hon. Govenor:
In re-considering your kind and generous offer to me to become Nevada's Comptroller I have concluded several issues that now prevent me from accepting your generous offer.
Firstly and foremostly, I am able to earn a substantially higher salary elsewhere, substantially higher, and also a far superior benefits package. Continuing, a retirement package is much more attractive and way more lucrative.
Secondly, I have observed the working conditions in Carson City and have concluded it is not for me. Too much sand and way to 'hot.'
Thirdly, and lastly, I regret not seeing this through and helping your state through this budget crisis, but it seems so obvious you and your boys just won't sit down and work out the issues with any counter-parties. This is not good and is certainly not in the best interest of the people of Nevada. I fear this would cause me great stress and anxiety, and I might end up in a hospital.
Let me extend my sincerest thanks, however, to you for the offer and my I wish you the best of luck in solving the unsolvable issues facing Nevada.
As Always,
Mike Milken, Formerly Of Drexel
It nice to see the Sun grow up.
Are they now going to withdraw their support of Reid, Jr who is a part owner of this mess?
i think both democrats and republicans can agree this is outrageous...
so...
here is what i propose...
instead of firing shots at each other...
let's join forces...
and fire shots together at the most outrageous excesses in the system...
so rather than reflexively criticize reid or ensign...
let's together criticize the most over paid fireman...
or the most over paid school distrist administrator...
or the most over paid political hack...
we need to join forces to solve this problem...
what do you guys say...
The writer of this piece has echoed what many of us have been saying for some time now. How long will he keep his job? And how many of those who have opposed this view will respond now that their beloved rag has turned on them for at least this time?
Good stance by the Sun. Now there needs to be an accompanying chart of the positions and the respective rates of pay. And a gradual reduction over a 9 month period of time will allow some belt tightening to occur in these peoples homes.
Who will set the new pay rates? Union hating republicRATs, or people with brains?
Birdie if you got a payraise for your job would you turn it down? The problem isn't with the middleclass worker, they have no control over their job unless they just quit. Our elected officials are the ones who let this economic mess come to being. How many of them are getting a paycut or losing their job? What's good for the goose... just quit bending over.
just do what the Rhode Island School district did, fire them all and rehire new people. I am sure many of the currently unemployed people will work for a generous, fair compensation package. you could hire more people and get more done, or hire the same amount of people, get work done and save money.
13% Unemployment yet we pay overtime.
Lets start by stating no overtime starting 6/1/10 and hire and train new people with a regular pay package.
Step two is to eliminate city government. Why do we have State/county/city levels of government which was developed before the information age which can allow areas to be remotely managed. After the city is eliminated maybe in a few years the county could be next afterall Carson City takes all of the local money anyway.
jaesun.
You reap what you sow.
BREAKING NEWS::: LAS VEGAS, NEVADA - Government CLOSES DOWN
State Runs Out of Money Shuts Down All Services
Gov. Gibboons closed down all police and fire departments in the state and is in the process of closing all state regulatory agencies. All public schools will not open as of tomorrow morning. The gaming commission shall remain open for another week. The Gov. has said that state is simply out of all cash and that he refuses to increase any tax whatsoever.
Several news agencies have reported looting and robberies up and down the Strip.
Restaurants are no longer being inspected for health safety and state funds for hospitals have ceased.
Casino owners have called an emergency meeting for this afternoon at an undisclosed location.
The Gov. has announced that as far as he knows the National Guard is now in charge of state wide protection and safety.
Super market chains and grocery stores are reporting looting and are planning on closing at the end of business today until further notice.
The Gov. has laid off all office employees in his office and all state employees until further notice. He has cancelled all salary to all state executives including his own.
Asked for a statement, Sen. Enginee told reporters that as far as he is concerned this is the best thing that has happened to the state in it's history. He added that maybe this will teach some people a lesson. He declined further comment or details.
A spokesman for the Gov. has indicated that no applications are being accepted for any form of state employement and that as of 5PM today no offices will be functioning any further.
The Federal Office of the Comptroller has issued an emergency brief ordering state banks to remain open, but as of now none will comply. The head US Attorney General and Ken Starr are now in route to meet with auditors. They have been granted a temporary leave of absence from their prison cells in Cochoran, Calif.
Carson City Wire Services
Mar. 5, 2010 11:39 AM
In many cases, compensation for public employees must be reined in
Huh. Ya think?
The government shouldn't open new job positions unless they can be afforded by funding. Quit the guesstamating.
All public employees salary should tie salary % increases to gaming win % increase. Costs need to match revenues.
One of the major problems is how this state has hitched its wagon to the gaming horse; how can "all public employees" be blamed or made to suffer the consequences of that? Now that horse of an industry has stumbled mightily, having lost 30% or more of its own revenues. Having supplied way too much of this state's budget funding for too long, Nevada will face 50% or more of a revenue loss when the 2011 session rolls around. So, keep cutting? Or better, shutting down functions? It seems to this humble writer that it is patently unfair to lump state workers in with, in particular, Clark County and southern Nevada local government employees, who to my reading are responsible for every example of excess, over-payment and over time abuse offered here, and in most other recent articles. Though not a state employee myself, they've taken a larger than equitable or fair hit to help balance a messed up and "unfixable" budget with furloughs and pay cuts. And until Nevada, my home of 25 years, finds a way to find a stable and fair tax base that casts a wider net of a broad base where no one industry has to be relied upon so completely to ensure good times, our lower and higher ed systems will continue to drop farther to the bottom and behind the rest of the US, and our state's government will be unable to provide much if anything on a sustained basis.
The Sun is talking out of both sides of it's mouth:
"Many people who criticize employee pay use the issue to decry government and unions, and that is a shame because it pollutes the debate. Government plays a vital role in our society, and Americans should want top-notch people working in government. To attract good candidates, governments need to be competitive with their pay and benefits".
This is the Sun's typical editorial stance, as they have properly promulgated as long as I've read the rag.
Then, somehow, Sherman Frederick gets ahold of Brian's typewriter, and we get this public employee bashing:
"How many private employers have anything close to these pay-and-benefits packages? Many union contracts require an annual wage increase, which has become a rarity in the past few years outside of government. "
WHERE DID THAT COME FROM?
Of course, reality is, MANY private employers have WAY BETTER pay/benefit packages! Some give up plenty to work in the public sector. Of course, the opposite is true in some cases.
And of course, Public Employees have not been getting their "annual wage increases", (as if Mr. Sun hasn't been paying attention!)
So, Mr. Sun, what gives? Is it the firefighter pay issue?
Because I think that ALL PUBLIC EMPLOYEES in the state of Nevada are being PAINTED WITH A REALLY, REALLY, REALLLLY BROAD BRUSH because of the firefighter pay issue.
I think Mr. Sun should be ashamed of himself today.
whynotjohn sez,
"All public employees salary should tie salary % increases to gaming win % increase. Costs need to match revenues."
Okeedokee, there, pardner.
Next time a whale drops ten mil, give me a call. We'll work something out!